Quiz has announced a “disappointing” fall in profits in its half-year interim results.
In the six months ended 30 September, the fashion retailer’s profits fell by £6.8m. This marked a “disappointing” change from the £3.8m in profits posted the year prior.
Underlying profits fell by 85% to £0.6m, whilst underlying EBITDA was also down by 54% to £2.7m. Overall group revenues decreased 5% to £63.3m in the period.
International revenues fared better with an increase of 3%, though UK stores and concessions revenue suffered an overall decrease of 11% to £31.3m.
The company fared better with online revenues, which were consistent with the first half of the year at £20m. This marked an underlying online revenue increase of 7%.
Website sales were up 12% with an 11% increase in website traffic year on year.
The company also reported that two stores and nine concessions opened during this period, and praised the “successful” launch of new marketing campaigns.
Tarak Ramzan, founder and CEO, said: “Whilst it is disappointing to report a decline of profits year-on-year, management are focused on implementing the actions identified further to the group’s business review conducted earlier in 2019.
“We are pleased to report progress improving gross margins and reducing costs across the business, and will look for further improvements to develop our omni-channel offering.
“Quiz has continued to achieve sales growth in its international business and, in particular, online despite the challenging trading conditions. This has been supported by effective marketing investment including a successful collaboration with TV star Samantha Faiers.”
He added: “The group has continued to generate cash and had £7.2m of cash at the period end. The board remains firmly focused on further improving the group’s financial performance and growing revenues with a strong focus on Quiz’s online and international channels.
“The exceptional charge incurred in relation to store impairments and onerous leases is partially attributable to the structural shifts whereby consumers are increasingly shopping online.
“We have a clear customer focus, a healthy brand and a flexible model that the board believes will enable Quiz to adapt to the changing retail environment and return to profitable growth in the medium term.”